Disbursement of government funds.
SEC. 84. Disbursement of government funds. —(1) Revenue funds shall not be paid out of any public treasury or depository except in pursuance of an appropriation law or other specific statutory authority.
(2) Trust funds shall not be paid out of any public treasury or depository except in fulfillment of the purpose for which the trust was created or fund received, and upon authorization of the legislative body, or head of any other agency of the government having control thereof, and subject to pertinent budget law, rules and regulations.
(3) National revenue and trust funds shall not be withdrawn from the National Treasury except upon warrant or other instruments of withdrawal approved by the Minister (Secretary) of Finance as recommended by the Treasurer of the Philippines, (4) Temporary investment of investible cash in the National Treasury in any securities issued by the National Government and its political subdivisions and instrumentalities including government-owned or controlled corporations as authorized by the Secretary (Minister) of Finance, shall not be construed as disbursements of funds.
Appropriation before entering into contract.
SEC. 85. Appropriation before entering into contract. — (1) No contract involving the expenditure of public funds shall be entered into unless there is an appropriation therefore, the unexpended balance of which, free of other obligations, is sufficient to cover the proposed expenditure. (2) Notwithstanding this provision, contracts for the procurement of supplies and materials to be carried in stock may be entered into under regulations of the Commission provided that when issued, the supplies and materials shall be charged to the proper appropriation account.
Certificate showing appropriation to meet contract.
SEC. 86. Certificate showing appropriation to meet contract. —Except in the case of a contract for personal service, for supplies for current consumption or to be carried in stock not exceeding the estimated consumption for three months, or banking transactions of government-owned or controlled banks, no contract involving the expenditure of public funds by any government agency shall be entered into or authorized unless the proper accounting official of the agency concerned shall have certified to the officer entering into the obligation that funds have been duly appropriated for the purpose and that the amount necessary to cover the proposed contract for the current fiscal year is available for expenditure on account thereof, subject to verification by the auditor concerned. The certificate, signed by the proper accounting official and the auditor who verified it, shall be attached to and become an integral part of the proposed contract, and the sum so certified shall not thereafter be available for expenditure for any other purpose until the obligation of the government agency concerned under the contract is fully extinguished.
Void contract and liability of officer.
SEC. 87. Void contract and liability of officer. —Any contract entered into contrary to the requirements of the two immediately preceding sections shall be void, and the officer or officers entering into the contract shall be liable to the government or other contracting party for any consequent damage to the same extent as if the transaction had been wholly between private parties.
Prohibition against advance payment on government contracts.
SEC. 88. Prohibition against advance payment on government contracts. —(1) Except with the prior approval of the President (Prime Minister) the government shall not be obliged to make an advance payment for services not yet rendered or for supplies and materials not yet delivered under any contract therefore. No payment, partial or final, shall be made on any such contract except upon a certification by the head of the agency concerned to the effect that the services or supplies and materials have been rendered or delivered in accordance with the terms of the contract and have been duly inspected and accepted.
(2) Notwithstanding the foregoing paragraph, any government agency, with the approval of the proper department head, may furnish supplies and materials to any party who has a contract with that agency if the supplies and materials are needed in the performance of the services being contracted for and the value thereof does not exceed in any one month ten percent of the value of the services already rendered, due and unsettled as computed by the agency concerned.
Limitations on cash advance.
SEC. 89. Limitations on cash advance. —No cash advance shall be given unless/for a legally authorized specific purpose. A cash advance shall be reported on and liquidated as soon as the purpose for which it was given has been served. No additional cash advance shall be allowed to any official or employee unless the previous cash advance given to him is first settled or a proper accounting thereof is made.
Payment of rewards.
SEC. 90. Payment of rewards. —When a reward becomes payable by authority of law for information given relative to any offense or for any act done in connection with the apprehension of the offender, the, reward shall, in the absence of special provisions, be paid in such manner as shall be prescribed by executive order. The final determination by the proper administrative authority pursuant to law or any such order, as to whether or not the persons concerned are entitled to any reward and the amount thereof, shall be conclusive upon the executive agencies concerned as regards the liability of the government.
Payments to creditors.
SEC. 91. Payments to creditors. —Payments to creditors shall be made only upon the specific approval of the head of the agency concerned or his duly authorized representative, or if there be no such officer, upon the approval of the department head endorsed upon the warrant or check or voucher effecting the payment.
Persons authorized to draw warrants or checks for payment out of government funds.
SEC. 92. Persons authorized to draw warrants or checks for payment out of government funds. —(1) Warrants upon the National Treasury or checks drawn against duly authorized bank accounts shall be drawn by the agency head having control of the appropriation or fund against which the warrants or checks are chargeable, or by such subordinate officer as shall be designated for that duty by the said agency head, who shall all be duly deputized for the purpose by the Treasurer of the Philippines. Copies of the designation shall be furnished the Treasurer of the Philippines and the representative of the Commission. Notice shall likewise be given to the Treasurer of the Philippines and the Commission when the designation is revoked. No member of the accounting unit or the internal control unit of the agency may be designated to perform the duty.
(2) Warrants chargeable to national appropriations or funds not under the control of an agency shall be drawn by such officer as shall be specified by law, or, in the absence of that officer, by an officer designated by the President (Prime Minister).
To whom warrants or checks payable.
SEC. 93. To whom warrants or checks payable. —Warrants chargeable to revenue or trust funds of the national government or checks drawn against the Treasury Checking Account for Agencies maintained with any government depository shall be made payable either directly to the creditor to whom the money is due or to a disbursing officer for official disbursement.
Countersigning of warrants or checks by auditors.
SEC. 94. Countersigning of warrants or checks by auditors. — No warrant or check shall be paid by the Treasurer of the Philippines, local treasurer, or any government depository unless it is countersigned by a duly authorized official of the Commission. When, in the opinion of the Commission, the interest of the service so requires, the warrant or check may be paid without the countersignature under such rules and regulations as it may prescribe from time to time.
Treasurer's responsibility for indorsements.
SEC. 95. Treasurer's responsibility for indorsements. — The Treasurer of the Philippines shall, within three years from the date of payment by him, be responsible for the indorsements on all warrants and checks and shall retain them in his custody, after which they shall be disposed of under pertinent regulations: Provided, that they are not needed for pending civil, criminal or administrative proceedings.
Payment of lost or fraudulently encashed treasury warrants or checks.
SEC. 96. Payment of lost or fraudulently encashed treasury warrants or checks. —When any check or warrant is lost, stolen or destroyed, the issuing officer may issue a duplicate check or warrant which shall be paid under regulations of the Commission in regard to issuance and payment and upon the execution of a bond to indemnify the issuing agency in such amount and with such security as the Commission may require.
Treasury Warrant or check encashed under forged or fraudulent indorsement shall be replaced by the Treasurer of the Philippines even before the recovery of the equivalent amount under rules and regulations that the Commission and the Department (Ministry) of Finance shall prescribe.
The Clearing or Payment of Treasury warrant and check paid by bank or other holder in due course and subsequently lost may be allowed under regulations of the Commission and the Department (Ministry) of Finance.
Disposition of stale warrants or checks.
SEC. 97. Disposition of stale warrants or checks. —(1) A treasury warrant or check which remains outstanding after two years from date of its issue shall not be paid by the Treasurer of the Philippines or by any duly authorized depository. The issuing agency shall take up in its books of accounts the amount of this warrant or check as surplus adjustment of the fund against which it was previously charged. Upon presentation of a stale warrant or check, the issuing agency shall cancel it and issue to the payee a substitute warrant or check in lieu thereof.
(2) Such sum as may be necessary to meet the obligation arising out of the issuance of substitute warrants or checks chargeable against the general fund shall be charged to the current year's General Appropriations law, subject to pertinent budget rules and regulations. Substitute warrants or checks payable from funds other than the general fund shall be paid from the appropriate funds.
Reversion of unliquidated balances of accounts payable.
SEC. 98. Reversion of unliquidated balances of accounts payable. —The Commission, upon notice to the head of agency concerned, may revert to the unappropriated surplus of the general fund of the national government, any unliquidated balance of accounts payable in the books of the national government, which has been outstanding for two years or more and against which no actual claim, administrative or judicial, has been filed or which is not covered by perfected contracts on record. This section shall not apply to unliquidated balances of accounts payable in trust funds as long as the purposes for which the funds were created have not been accomplished.
Transfer of unexpended balances to the general fund.
SEC. 99. Transfer of unexpended balances to the general fund. —The Commission may transfer at any time, from moneys appropriated for a specific purpose, to the unappropriated general fund any surplus balance standing to the credit of any appropriation or fund when the officer having administrative control thereof certifies to the Commission that there is a surplus in excess of the requirements, or that the work or purpose for which the appropriation was made has been completed, indefinitely postponed or abandoned, and that there is no outstanding obligation to be paid therefrom.
Reports of disbursing officers in a government agency.
SEC. 100. Reports of disbursing officers in a government agency. — Disbursing officers in any government agency shall render monthly reports of their transactions pursuant to regulations of the Commission to be submitted not later than the fifth day of the ensuing month to the auditor concerned who shall conduct the necessary examination and audit within thirty days from receipt thereof.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
